Arvind Ltd. supplies the following information for calculating the working capital firm levels of activity of Rs. 2,40,000 units. The cost structure particulars are:

(a) Raw materials are in store on average for 1 month.

(b) Work in process (100% complete in regard to materials and 50% for labour and overheads for half a month’s production.

(c) Finished goods remain in godown on average for a month.

(d) Suppliers one month to customers 2 months (calculation of customers may be made on selling price).

(e) Minimum cash balance required is Rs, 30,000.

(f) The production is evenly throughout the year.
 

Transcribed Image Text:

Raw materials Direct labour over-heads Cost Per Unit Rs. 30 10 20 60 15 75 Total Profit Selling price Raw materials Direct labour over-heads Cost Per Unit Rs. 30 10 20 60 15 75 Total Profit Selling price

Answer rating: 100% (QA)

ANSWER Ans Rs 4... View the full answer